@tcbofade wrote:
I need some help thinking boys and girls.
First, financially, DW and I live in 1952. Think Ricky and Lucy. DW DOES work for a living and contributes to the household income, but paying the bills, making the plans, managing credit, etc are my responsibility and we BOTH like it that way.
We live in the midwest. We get all four seasons here. (Sometimes all in one day!). DW is one of those drivers who firmly believes that one simply MUST have a 4x4 during winter months or the freeway will open up and swallow you whole. I drive a two wheel drive car year round and rarely have any difficulties...she HAS done so in the past but really, REALLY isn't comfortable without 4x4 in the winter.
We JUST paid off her SUV, and the 4x4 went out. It's going to cost more to repair than the automobile is worth...thus, I don't want to do that. For the moment, she's driving it as a two wheel drive. (I pulled out the driveshaft to the rear axle, and the thing drives fine.)
Prior to this failure, we HAD discussed purchasing her a new automobile mid 2017. It would certainly be a 4x4 or an AWD vehicle.
Her current preference is to purchase some little $2k or so 4x4 SUV to own through the next winter, then purchase a new 2017 model sometime next year. (Keeping both her now two wheel drive SUV AND the $2k or so "beater")
Frankly, I'd rather spend $4k or so on a "nicer" 4x4 that she could get a FEW years out of, then consider a new one in 2018 or 2019.
We're not being mean or arguing with eachother, simply disagreeing and I'm not sure of exactly WHAT I want to do.
Please keep in mind that you, I, God, mother nature, and the presence of the Pope is NOT going to change her mind...she will need a 4x4 by winter.
Do I spend $6k fixing a $5k SUV?
Do I spend $2k buying a beater that she's going to hate?
Do I spend $4k buying a nicer looking one that she won't hate?
Do I throw in the towel and buy her a brand new one now?
Your thoughts?
First, regardless of not being able to change her mind, send her this article from Consumer Reports.
Do not spend $6K to fix something worth $5K. Waste of money.
Spending $2K on a beater for a year is only worth it if a) it lasts without repairs, and b) you can recoup some of that $2K when you trade it in. Likely the blue book on a $2K beater will be pretty low.
I'd say the same for a $4K car that you are trying to get 2 years out of, although there is a much bigger chance you'll be paying repairs in those two years that will up the cost in the long run.
Without knowing what kind of new car you are looking at (i.e. how much $$, and how long would you finance) it's hard to say, but here's a couple of examples.
@$20,000 @ 1.9 for 60 mo = $350 / mo = $4,200 year one, $8,400 for two years
@$20,000 @ 1.9 for 48 mo = $433 / mo = $5,196 year one, $10,392 for two years
For a 1 year beater:
In the first case you're in for $2K more, in the second $3K, minus any repairs. Then you're getting a new car that cost car price + whatever you don't get back in trade + repairs spent during the past year.
For a 2 year beater:
In the first case you're in for $4K more, n the second you're in for $6K more, again minus any repairs (greater chance for this). Again then it's new car price + what you don't get back in trade + 2 year repair cost.
I have always been a fan of new, especially for the wife, as you get all the good years out of the car, then can trade in before you are putting a lot of $$, but it depends on what you can afford per month. Interest rates are so low on car loans right now that for me it's worth it.
Buying used always has the risk of major repairs at any time, especially at the low end of pricing, so that needs to be considered.
Just my opinion.
